Why China Eyes Taiwan: Chips, US Arms, Strategic Location Fuel Tensions

Economy
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News18•29-12-2025, 12:01
Why China Eyes Taiwan: Chips, US Arms, Strategic Location Fuel Tensions
- •Taiwan's TSMC produces over 90% of advanced semiconductor chips, vital for global tech and China's economy.
- •US arms packages, like HIMARS and ATACMS, strengthen Taiwan's defense, provoking China's 'One China Policy' stance.
- •Taiwan's strategic location in the 'First Island Chain' offers China Pacific access and control over crucial trade routes.
- •China conducts 'Justice Mission 2025' military drills, aiming to demonstrate its ability to isolate Taiwan.
- •A full-scale war could devastate the global economy ($10 trillion loss) and destroy Taiwan's chip industry.
Why It Matters: China's aggressive stance on Taiwan is driven by its semiconductor dominance, US support, and strategic location.
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